Estee Lauder Companies Inc (EL)
Pretax margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -1,040,000 | 772,000 | 1,397,000 | 3,036,000 | 3,331,000 |
| Revenue | US$ in thousands | 14,326,000 | 15,608,000 | 15,910,000 | 17,737,000 | 16,215,000 |
| Pretax margin | -7.26% | 4.95% | 8.78% | 17.12% | 20.54% |
June 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $-1,040,000K ÷ $14,326,000K
= -7.26%
The pretax margin of Estee Lauder Companies Inc. has experienced a significant decline over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the pretax margin stood at 20.54%, indicating a relatively strong profitability before taxes. By June 30, 2022, this margin decreased to 17.12%, reflecting a noticeable reduction in pre-tax profitability. The downward trend continued into June 30, 2023, with the margin further diminishing to 8.78%, nearly halving over the year. The decline persisted into the fiscal year ending June 30, 2024, where the pretax margin contracted to 4.95%, approaching minimal levels. By June 30, 2025, the margin transitioned into negative territory at -7.26%, indicating that the company's pre-tax operations resulted in a pre-tax loss during this period.
Overall, the company has experienced a steady deterioration in its pretax margin over the four-year span, culminating in a negative margin in 2025. This trend suggests increasing challenges in maintaining pre-tax profitability, possibly due to factors such as rising costs, competitive pressures, or other operational and external influences impacting earnings before taxes.
Peer comparison
Jun 30, 2025